ElectroFile Income Tax Service   Income Tax Service
5200 W Market St
Greensboro, NC 27409
  Terry Hough, President Terry Hough

December 01, 2014

NC Individual Tax - Laws are substantially changed for 2014

Today, I'm going to shift from my normal discussion and just pass on information directly from the NC Department of Revenue. Your NC taxes will be affected, so please take the time to read over the following information.


The Tax Simplification and Reduction Act (House Bill 998) was signed into law on July 23, 2013. Under this new law, all taxpayers will be taxed at a lower rate and be granted a higher standard deduction. The Act made significantchanges to the individual income tax law for tax years beginning on or after January 1, 2014.

As the 2014 tax filing season approaches, please consider the following key changes to the 2014 individual income tax law.

Tax Rate - The North Carolina individual income tax rate is now the same for all filing statuses and has been reduced to 5.8%. The tax rate is scheduled to be reduced to 5.75% for 2015.

Standard Deduction - The amount of the North Carolina standard deduction has increased for all filing statuses.
Filing Status Previous Standard Deduction For 2013 New Standard Deduction For 2014
Single $3,000   $7,500
Married filing jointly / qualifying widow(er) $6,000 $15,000
Married filing separately $3,000   $7,500
Head of household $4,400 $12,000

Itemized Deductions - North Carolina’s itemized deductions are no longer identical to the federal itemized deductions and include the following:

Children and Dependents Business Owners Retirees -
North Carolina Department of Revenue Published September 2014